What exactly are annual appraisals aimed at?
Annual employee appraisals are an important part of a company's employee development strategy. Employees and managers meet regularly (usually once a year) within a clearly structured framework to discuss individual performance, the current work situation and any development opportunities. Open communication is the key to success here. However, line managers and employees often have different objectives for these discussions.
This is what managers aim to achieve in the performance review:
- Performance measurement: Performance measurement is about assessing individual performance. This is typically based on previously defined KPIs. The assessment often also serves as the basis for performance-related bonuses, which is why it is important to organise and communicate it transparently.
- Optimise employee assignments: Based on defined strengths and weaknesses, managers ensure that employees are deployed correctly.
- Improve cooperation: This point relates primarily to the effectiveness of cooperation and internal communication. The aim is to optimise teamwork and communication between colleagues. Managers like to use these discussions to identify obstacles to collaboration and develop strategies for more effective work processes together with employees.
- Strengthening employee loyalty: Another aim of the annual performance review from a management perspective is to strengthen employee loyalty towards the company. An open dialogue can clarify misunderstandings and increase job satisfaction.
- Identify talents and strengths: An important aim of the appraisal interview is to identify the strengths and skills of each individual. In this way, individual competences can be optimally utilised so that the best possible company success can be achieved.
- Identify development opportunities: Among other things, employees' career goals should be discussed in the annual appraisal interviews as well as the various development opportunities within the company. This increases motivation and can also make a significant contribution to employee retention.
- Communication of relevant changes: Are there anly changes in the company imminent that will directly affect the employee? Then the annual appraisal is a good time to communicate this and discuss the next steps in detail.
This is what employees are aiming for in the annual appraisal:
- Constructive feedback: It is important for employees to receive honest and constructive feedback from their superiors. This is the only way they can optimise and improve the way they work.
- Appreciation: An important aspect of modern work culture is appreciation. Employees want their commitment to the company's success to be rewarded not only in monetary terms, but also through interpersonal recognition. Honest feedback and praise from the manager should therefore also be part of the conversation.
- Further development opportunities: Another focus of the interview should be further development opportunities. How do the individual career goals fit in with the general corporate strategy and developments within the company? Are there synergies here? Is there a need for training, etc.?
- Building trust and openness with regard to new developments: Open interaction with one another also requires a certain degree of transparency with regard to new developments. Changes in the company, whether they are technological, structural or strategic, should be discussed and jointly reflected upon. As a result, employees are not only informed promptly, but also feel included and valued in transformation processes. In this way, uncertainties can be prevented and a relationship of trust is established.
How could an appraisal interview be structured?
Good preparation on the part of the HR department and the manager is crucial for the success of the annual appraisals. To ensure an organised framework, you should consider the structure for the meeting and communicate it to the employees in advance. For example, you could send out a guideline so that everyone involved can properly prepare for the meeting. You should consider the following three key phases:
- Reflection on the past year
- Assessment of the current work situation
- Discussion about future goals and developments
What questions should you ask in the annual meeting to make it a success?
Your guideline lays the foundation for a successful appraisal interview. You should therefore think carefully about what you want to achieve with the dialogue. General questions about challenges and goals achieved are a good start, but specific and innovative questions can give you a deeper insight into the satisfaction and current situation of your employees. We have compiled a pool of questions for you here that can serve as inspiration.
Reflection questions:
- What new knowledge or skills have you acquired over the past year?
- Looking back at your projects over the past year, what specific endeavour or problem has particularly challenged your skills?
- To what extent have the company's principles and objectives influenced your actions over the past year, and how do you integrate them into your daily tasks?
- In which activities do you now feel confident and in which areas do you still see room for development?
- How would you rate the past year if you had to give it a school grade?
Analysis of the current situation:
- How could we further develop and improve cooperation and the exchange of information in your team?
- How well do you currently manage to balance your professional and private life? What measures can we support you with so that you can organise your work-life balance even better?
- How would you rate your current access to the tools and support you need?
- Are there any tools or resources that would make your working day more productive?
Outlook for the future:
- In which areas do you expect more support from me in order to realise your professional goals?
- Are there specific skills or areas of knowledge that you would like to develop or deepen in the coming year?
- Is there anything you would like me to do as a manager? What are your expectations towards me and my role as your manager? Is there anything I should do more or perhaps less of?
- Which guiding theme would you choose for the upcoming year?
- Everyone has areas for development - what would you like to prioritise improving in the upcoming year? Do you have a role model or source of inspiration that you could look at or a person you could turn to for support?
Create an atmosphere for dialogue in which your employees feel comfortable and can express themselves freely and openly. This is the best way managers can understand what motivates their team members and what they are striving for. The right approach can inspire employees to contribute to the company's development and achieve their personal goals.
